Professional Documents
Culture Documents
KEYWORDS: Management, Communication, Factor Analysis, Statistical Reliability and Workplace Industrial
relations.
I.
INTRODUCTION
Industrial relations originate from classical theories, specifically from marginal productivity to cognitive dissonance, from Karl Marx to Max Weber. These theories are broader than industrial relations and of course they contain both bad and good concepts: It is good because they link industrial relations with other systems and disciplines; it is bad because industrial relations needs its own theories, models, identity and systems, and these are still largely lacking and/or badly disorganized in the construction industry Heinemann (1969:13). Management strategy is not a new concept in business literature or in practice. However, its role has been seen as a cornerstone in the manufacturing and construction sectors. In addition, management strategy requires extensive communication between management and employees and also the collaborative efforts of employees (seeCooke and Meyer 1990; Kochan, Katz, and McKersie 1986). Usually, management strategies vary from the management of strategic planning to implementation of strategy, while each choice of strategy has its own advantages and disadvantages - strengths and weaknesses are sometimes being balanced out by application. In a theoretical framework, managers, employees and union leaders seek to optimize their respective gains from the employment relationship. On the other hand, all parties would like to hold on to their traditional power. To measure or evaluate employees' benefits under traditional power relationships or, in other words, for employees to value this kind of benefit, is of great concern for industrial reform. In this connection, Cooke (1990) conducted a study on factors influencing the effect of joint union-management programs on employee-supervisor relations: He found that an improvement in employee-supervisor relations is likely when joint programs are structured to have highly active team-based efforts and substantial participation by union leaders ( which indicates supervisor traditional power has been reduced).The tendency of treating management strategy objectively involves recognition of the essential difference between today and tomorrow - including how tomorrow should be. It meansindustrial relations reform strategy occurs when the existing circumstances need a change or need to be improved. Thewarningis that, the present workplace industrial relations practice deserves a new focus. Management of construction focusing on industrial relations reform strategy is not a waste effort is a key solution to industrial relations problems. But the application appears to be aggressive and is likely to fail because it holds out a proposal to integrate the various factions /departments (especially HRM) in the industry.Besides, identifying the opportunity and setting the right direction does not guarantee success. Applied industrial relations management strategy entails: strategy formulation, culture, organization structure, human resources, and management processes. Assuming that instrumental factors behind industrial relations management reform originate from economic events or perspectives (that is, business is defined by function, industrial relations by function, employment relations by function), ideally, workplace industrial relations management reform strategy isclassified into three key sectors and they are: 1) The business sector (employers' sector); 2) The security sector (financial sector);
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Civil and Civic and Ford (1990) adopted a Workplace Learning Process concept team and discovered the difference between the traditional consultant role and the management employee learning process. In support of their discovery, Civil and Civic (1990) comment: "typically a consultant performs some work then provides a report indicating what should be done. The problem is that the consultant does all the learning, acquires the knowledge, and then leaves the organization to implement something it had little input into." Basically, lack of interest in research and orientation can be seen in managerialbehaviour; that is, management is oriented more to the past than to the future. The construction industry management needs to be refinedto be able to meet the current and future challenges. Identifying the current problem suggests that future challenges can stimulate rapid growth and a change in the industry. Historically, most managers do not recognize the ideological issues that underlie their organizational conflicts - only when they are blatant and the lines of struggle are drawn, as in labour management relationships ( Harrison 1972). In the past, management theories have demonstrated that managerial strategy is vital to understand patterns in the workplace. The originality of these theories is based on manufacturing and mining principles where workplaces are permanent. At the time when theorists, academics and independent researchers focused on these problems, they did not take into account the pattern of workplace industrial relations in the construction industry. Indirectly, these researchers were not aware of what was going on in the industry. A more likely explanation of this is that the process of managing workplace industrial relations in the construction industry was not properly defined. The specific definitions of workplace industrial relations characteristics compared with construction industry management characteristics, it is identified that they somehow vary in details. Thus, these definitions consistently refer to a combining of individual efforts as contributions to attaining certain management goals.Therefore, to address management tradition or the management decision making process, the application of a social division of labour concept must be incorporated. Stogdill (1966) applied detailed applications of systems theory known as the input-output system. Katz and Kahn (1966), Miller and Rice (1967), and Wren (1968) identified that workplace industrial relations management reform strategy can be classifiedinto three key sectors.Benedix and Fisher (1969), saw the limitation in the Human Relations approach as a failure to recognize the explicit value-orientations for collaboration and stability in society rather than conflict and change. The two authors were suggesting that the reasons for the growing problems of management at workplace industrial relations in Australia and growing problems of industrial conflicts in Great Britain were due to the values and practices. Industrial dispute is concerned with various mediator processes that cut across resource types and are of central concern to those at high levels of management. Miner (1971), considered the action of a mediator in terms of control concept, suggested a three step process: a) Establishing a set of standards; b) Measuring actual performance against these standards; c) Correcting all deviations from these standards.
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Figure 1 Mediator Control steps Miner's intention of using a mediator is to create a self - sustaining system, so that undesirable deviation from a standard immediately triggers a feedback process that serves to correct deviations. His work can be regarded as a pinnacle in the management mediator tradition where functionally interrelated institutions influence resources. On one hand, a mediator structure represents action. On the other hand, budgeting activities represent monetary resources which control a mediator. Likewise, industrial relations represent relationships between management and employees, working conditions and so on, in order to increase productivity. Production control or quality control operates in a similar manner with regard to material resources. Human resource mediators - which are related to any techniques that identify individuals whose performance is below standard - serve to initiate corrective action. Developing human resource management as a mediator which provides services such as training, wage and salary administration, safety, labour relations, job analysis, employee communication and supervision, also holds the promise of full integration, implementation and formulation. In the construction industry, there exist one or more power centers that serve to direct efforts toward "goals. The strong base of the power centre is usually translated in terms of a hierarchy of allocated authority, with individuals at higher levels guiding, limiting, or controlling all activities at the lower levels. It is through this power base system or hierarchy that management becomes an essential aspect of the industry. The purpose of this study is to provide a clear understanding of what is involved in the process of industrial relations and its impact.
II.
New South Wales was selected as the area which the data was collected. Data was limited to New South Wales because all the participating parties are exposed to the same environmental working conditions. Mail questionnaires were selected as a means of data collection and responses were analyzed using a standard statistical package (SPSS).Involved are management, non-management employees, employers' associations and the building and construction trade union. Initially, 42 construction firms were contacted. Their names and addresses were randomly selected from both Yellow Pages and Labor Council of New South Wales' lists of construction firms in New South Wales. These companies were mailed the covering letter with a sample of questionnaires and forms to sign if they agreed to participate in the research study. When respondents completed this form, they supplied the data requested on the number of operating construction sites and number of employees, both management and site construction crews. Non-management employees working at individual construction sites were later contacted. Due to the research guidelines the number of eligible participants was set at two non-management employees per site. MEASUREMENT OF VARIABLES All variables were defined but they were not identified or measured on the basis of previous investigation or experiment because there was no empirical evidence to build on. Instead, they were derived from the study hypotheses and measured on the basis of Job Evaluation variables: Measured on a five Iikert point scale with responses ranging from not important to highly significant. Assumption that the observations are drawn from a normally distributed population before using analysis of variance (ANOV A with the Scheffe and F test) to test the propositions.
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MANAGEMENT PERCEPTIONS OF MOTIVATION The lists of variables investigated to test management perceptions of motivation are shown below. Their mean, standard deviation variance, range (minimum and maximum) are also identified. It was identified that TS2 (Their Salary) scored highest mean while FI2 (Follow Instruction) scored lowest mean. It might be necessary in the future to explore the relationships between TS2 and FI2. Management perceptions of workplace communication Lists of investigative variables relating to management perceptions of workplace communication in the construction industry are shown in the box below. The communication factors identified in this study are linked to job motivation, job satisfaction, participation, workplace industrial relations/ organizational reform and nonmanagement employee role stress. In the table HIF (How Important Feedback) scored the highest mean while DP (Distribution Profit) scored the lowest mean. This indicates that management recognizes the importance of feedback and also shows that communication has little influence on distribution of profits.
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34 50
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Figure 1.1 Rotated eigenvalue and varimax (3D) factor plot relating to management perceptions of job satisfaction FACTOR ANALYSIS OF MANAGEMENT PERCEPTIONS OF EMPLOYEE PARTICIPATION Table 2presents the factor loadings and communality coefficients extracted from variable scores for themanagement perceptions of employees' participation in workplace reform and management decision making. Itpresents maximum factor loadings and communality coefficients obtained from the scores on management perceptions of employees' participation in industrial relations reform in the construction industry workplace.The Figure 2.1 shows the three dimensional plot of the loadings of the first three factors and a scree plot of total variance(eigenvalue) associated with each factor. The factors thus identifiedrepresent 79.3% of all items. Factor 1 in Table 2 comprises eight items denoting significant influence on employee participation in workplace industrial relations and management decision making machinery. These items describe management communication and implementation capabilities. Factor 2 comprises three items and can be described as denoting continuing achievement, indicating that employees' participation can increase workers' productivity, guarantee quality assurance, and reduce industrial conflict. This also appears to describe a communication problem. Factor 3 consists of three items which can be classified as indicating the influence of employees'
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Item PR IR ME
Item JS SW RLA
Loading 7 .72725 .67498 .59817 Eigenvalue 8.98408 2.89634 2.30357 2.05681 1.79557 1.28344 1.11547 1.08968
Item CM CC
Item AES IWS IEP IWC IEM EMT IWR IEL IWP QA RIC EP EC ES EBA STI WRD QC PR IR ME JS SW RLA CM CC
Communality coefficient .89179 .77899 .81401 .83147 .89435 .76414 .77923 .71291 .85740 .75860 .70143 .78227 .86980 .85375 .77139 .75997 .87847 .87069 .83745 .81880 .95210 .69302 .75645 .75989 .73556 .73745
CUM =Cumulative,
PCT = Percentage
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Figure 2.1 Rotated eigenvalue and varimax (3D) factor plot rating to management perceptions of participation
III.
Table 3 below presents factor loadings and communality coefficient extracted from factor analysis of management perceptions of job motivation together accounting for approximately 74.6% of the total variance, while Figure 3.1 shows the three dimensional plot of the loadings of the first three factors and a scree plot of total variance (eigenvalue) associated with each factor. Factor 1 in Table 3 comprises four items regarded as representing both intrinsic and extrinsic motivation with minimum influence. Job Autonomy (JA) scores high while TS2 scores lowest on factor 1. It appears that extrinsic motivation is associated with professional aspects of motivation, that is professionally conferred rewards include TS which scores lowest on factor 1. Factor 2 consists of three items related to intrinsic motivation. Factor 2 clearly denotes role professional rewards. Factor 3 comprises four items which can be regarded as indicating internal motivation associatedwith team management. Factor can be labeled as internal social aspects of job motivation that is, a socially conferred role reward relating to dynamic process. Factor 4 consists of only item with high loading. This factor can be described as denoting power or recognition.
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Item Communality Coefficient JA2 .73573 FI2 .56372 MS2 .59552 ENV .85166 INT .71687 WGR .80121 RES2 .76005 ICME2 .84967 REC .76579 IEPMDM2 .79007 ST3 .77565
Factor 1 2 3 4
Figure 3.1 Rotated eigenvalue and varimax (3D) factor plot relating to management perceptions of job motivation
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Cum = Cumulative
Figure 4.1 Rotated Eigenvlue and Varimax (3d) factor relating to management perception of communication
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Figure 4.1 Rotated Eigenvlue and Varimax (3d) factor relating to management perception of communication
IV.
INDUSTRIAL RELATIONS
Table 5 gives factor loadings and communality coefficient obtained from factor analysis of variable scores relating to industrial relations perceptions of management. Table 5 shows the factor loadings and communality coefficient relating to management perceptions of industrial relations. The factors all together account for approximately 60.9 % of the total variance. Figure 5.1 the loading on the two factors are plotted and a scree plot of total variance (eigenvalue) associated with each factor is indicated. Factor 1 consists of three items and can be described as role of Law and role of management. The willingness of management to resolve industrial disputes without taking legal action could suggest the role of management in implementing industrial relations policy in the future. It shows that perceptions of industrial relations performance are strongly associated with guidelines. Factor 2 consists of three items and can be viewed as management dimension, lacking management skill in handling industrial relations issues.
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Item Communality coefficient Factor IRPGA .85679 1 2.26881 IRCPM .59607 2 1.38606 60.9 IRCIOR .52935 RMHIRHRM .64482 NILLU . 63046 WRPGWIR .39737 Cum = Cumulative Pct Percentage
Eigenvalue 37.8
CumPct
Figure 5.1 Rotated Eigenvalue and Varimax (2D) factor plot relating to management control of workplace industrial relations Practice
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V.
In this study, "workplace management strategy" is defined as occurring "when building and construction industry management sits down to talk to unions/employees about working conditions, seeks engineers and construction crews to advise on operations; and hirers legal specialists to make sure agreements are drawn up genuinely according to the existing law." The results generated from this study indicate that the above definition is still missing from workplace planning strategy. The reason for this could be because the establishment of a workplace management strategic base in the building and construction industry needs to include communication, policy, implementation, vision, mission, situation analysis, and recognition of issues and objectives. Figure 12.1 below shows the sequencing/relationships of eight major items of workplace management strategic concepts. It is assumed that management and other construction parties (employers' associations, union and employees) are able to formulate policies and implement those policies without communication breakdown. In this way, management can measure its activities in relation to productivity and performance, as well as employees reproductively and performance. The outcome could be recorded as an accomplishment or a failure. The principle of good management is that management personnel are ready to learn from both success and failure of their activities.
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